Trade minister: All Indonesia ore and concentrate shipments halted |
- Trade minister: All Indonesia ore and concentrate shipments halted
- London Mining doubles production, trebles sales volumes
- Lake Shore Gold slashes costs 40%
- Roundup 2014 trade show sold out in Vancouver
- Quebec's Bill 70 came into effect: here is what that means
- As stocks tank, gold price enjoys longest winning streak since 2012
| Trade minister: All Indonesia ore and concentrate shipments halted Posted: 24 Jan 2014 03:06 PM PST Indonesia rocked the mining world earlier this month putting into effect a 2009 law calling for an outright ban on unprocessed ore exports against expectations of a climb down by authorities. The Asian nation is the world's premier thermal coal and refined tin exporter and is also a gold and copper powerhouse, but as the number two miner and largest exporter of nickel the ban was seen as a potential game changer in the market for the steelmaking raw material. While the nickel price – up 10% since the ban came into effect – has not reacted too dramatically despite the fact that almost 20% of global ore supply has been taken off the market, the ban is having some spillover effects. In a last minute compromise, Indonesian officials amended the rules under the ban, allowing base metals including copper, manganese, lead, titanium, zinc and tin to be exported in concentrate until 2017. But the country then slapped a concentrate export tax of 20% on these metals which will escalate to a whopping 60% by the second half of 2016. Reuters reports the "surprise and last-minute inclusion of an escalating export tax on metal concentrates appears to have forced all other miners to stop shipments": "There has been no concentrate export since January 12," Bachrul Chairi, director general of foreign trade at the trade ministry told Reuters. "As of now, no miners or companies have requested export approval for concentrate or processed ore from the trade ministry. "It's a problem because nobody can abide by the export tax, including Freeport," said Erry Sofyan, secretary general of the Indonesian Bauxite and Iron Ore Entrepreneurs Association. Phoenix-based Freeport-McMoRan Copper & Gold (NYSE:FCX) who operates the world's fourth largest copper mine at Grasberg in the West Papua province, and Denver's Newmont Mining Corp. (NYSE:NEM) together account for 97% of Indonesia's copper exports.  |
| London Mining doubles production, trebles sales volumes Posted: 24 Jan 2014 02:25 PM PST  Full year sales were 3.7Mwmt, a 186% increase year on year London Mining's (LON:LOND) new processing plant made a mark with production at the company's Marampa Mine in Sierra Leone with a full year production at 3.4 million wet metric tonnes (Mwmt), a 108% increase year on year according to the company's Q4 2013 production report. Production was still better in Q3 compared to Q4, when production was hampered by the wet season and commissioning times at the mill. "The effects of the wet season at Marampa continued into Q4 2013 with lower mining rates causing full depletion of the run of mine ("ROM") stockpile. This significantly impacted our ability to feed the processing plant with the appropriate ore blend on a consistent basis," wrote the company in a news release. Full year sales were also up significantly, going from 1,162Mwmt in 2012 to 3,655Mwmt in 2013. The company said that the increase in sales was ". . . due to the draw-down of the concentrate stockpile and higher utilisation of the augmented barging and transhipment operation following the end of the wet season." The company's CEO predicts strong volume growth. "We increased installed production capacity by 40% to 5.4Mwmt/a by the end of 2013 and are commissioning the plant upgrades which will deliver strong volume growth in 2014," said Graeme Hossie, Chief Executive of London Mining. The Marampa mine is a brownfields site formerly operated by the Sierra Leone Development Company (DELCO) and William Baird between 1933 and 1975. Marampa reached a peak production of 2.5mtpa before low iron ore prices forced its closure. Continuing weak market economics and civil war prevented redevelopment of the mine until the mining licence was acquired by London Mining in 2006. London Mining is also developing projects in Greenland and Saudi Arabia. London Mining acquired Marampa Mine in 2006. |
| Lake Shore Gold slashes costs 40% Posted: 24 Jan 2014 02:06 PM PST Lake Shore Gold (TSE:LSG) could not escape the carnage on world markets on Friday despite following up record production numbers with the announcement of below guidance operating costs. The $308 million miner shed 2.6% at $0.74 on the Toronto big board with two million shares changing hands. The mining sector was generally weak on the day with the TSX S&P Global Mining index down 2.8% The Canadian miner announced fourth quarter total cash costs fell dramatically as throughput – up 60% – and grades ramped up at its Bell Creek Mill in Ontario. Earlier in January the company announced record production of 134,600 ounces of gold for 2013 from its Bell Creek and Timmins West mines. Lake Shore managed to shrink cash costs to $605 an ounce and all-in sustaining costs to $835 an ounce. Cash costs declined 16% quarter on quarter and 39% year on year. For the year, Lake Shore estimates total cash costs and all-in-sustaining costs averaged $770 per ounce – lower than the company's guided range of $800 to $875 per ounce – and $1,135 per ounce respectively. The Toronto-based company expects production is to grow to between 160,000 and 180,000 ounces this year. |
| Roundup 2014 trade show sold out in Vancouver Posted: 24 Jan 2014 01:20 PM PST
 AMEBC will host its 31st anniversary Mineral Exploration Roundup January 27-30 in Vancouver. In 2013 more than 7,800 delegates from 44 countries attended the show. It is anticipated that this year's show will grow, in part due to returning programming, new session focused on innovation in the exploration sector and more than 240 exhibitors displaying supplies and technology revolutionizing mining. Delegate can also take in conferences, poster sessions highlighting ninety geological mapping and economic geology studies across Canada and visit the Core Shack to see new operating and advanced discoveries around the world. For those wanting to discover properties held by independent prospectors, within the Core Shack is the Prospectors' Ten. Here prospectors are on hand with rock and drill samples to discuss their findings. Those with a taste for adventured can take a two day trip to Myra Falls, a complex-metal zoned volcanogenic massive sulphide in the Sicker Group volcanic rocks of Vancouver Island. There will also be technical session starting on Monday to cover topics ranging from public geoscience, best practices, to site-specific presentations on Yukon and Alaska and historical sites across the province. For all events, here is the 2014 Roundup schedule at a glance. |
| Quebec's Bill 70 came into effect: here is what that means Posted: 24 Jan 2014 01:05 PM PST Submission from Borden Ladner Gervais LLP Bill 70, An Act to amend the Mining Act (Québec), passed on December 10, 2013. Most of its provisions came into effect immediately upon Royal Assent. While it was rushed through the legislative process, it is not a major overhaul of the current mining regime. Under Québec's previous Mining Act, a mining company could make a claim, and convert it into a mining lease upon proof of exploitable reserves. This Bill generally adds certain requirements to the application for conversion, most of which codify existing industry best practices. The main changes are:
Creative Commons image from Christophe.Finot |
| As stocks tank, gold price enjoys longest winning streak since 2012 Posted: 24 Jan 2014 11:02 AM PST The price of gold added to yesterday's strong gains on Friday, jumping to a high above $1,270 an ounce amid widespread carnage on financial markets. Up five weeks in a row; it is the yellow metal's longest weekly winning streak since September 2012. Gold is trading 5% higher year to date. In lunchtime trade on the Comex market in New York, February gold futures had given up most of the early gains to change hands at $1,263.80 up slightly from yesterday's close after hitting a high for the day of $1,273.20 around 10am EST. Volume was brisk and by 1pm EST, volume traded in February gold, the most active future, reached 132,000, contracts compared average daily volumes on the exchange of less than 160,000. Trading in gold for delivery in April was also up at some 28,000 contracts at a price of $1,264 an ounce. Gold was finding favour on Friday as a safe haven asset as the US dollar slid, stock markets tanked and bond yields dropped. Mining stocks were not spared and the S&P/TSX Global Mining Index lost 2.6% in value, wiping out recent gains. Gold's 28% price drop in 2013 were marked by a rotation out of gold-backed ETFs into riskier assets like equities, prompting many to speculate that gold's reputation as a hard asset and storer of wealth were something of the past. Friday's action suggested gold's safe haven status is not as tarnished as some would have it. The destruction on stock markets were caused by fears of an emerging market crisis after manufacturing numbers from China showed a surprising contraction. China dominates the global trade in just about every commodity including iron ore (representing 70% of world trade), copper(42%), coal (47%), nickel (36%), lead (44%) and zinc (41%). A slowdown in Chinese metal and mineral imports will have a knock-on effect on other resource-dependent countries like Brazil and other Latin American economies, South Africa, Australia and Canada, which have all seen their currencies retreat sharply in 2014. Gold's gains on Thursday came after news that Sonia Gandhi, leader of India's Congress party and ruling alliance, had asked the Indian government to relax gold import curbs ahead of parliamentary elections later this year reports the Times of India. Long the top importer of gold, India fell behind China in 2013 after bullion import duties were pushed up tenfold – from 1% at the start of 2012 to 10% – and other rules such as strictly cash only for imports, mandatory re-export of 20% of imports and transaction taxes stymied India's gold industry. Despite the fact that premiums over the London fix demanded by Indian gold traders from jewelers shot up as high as $140 an ounce, according to the closely watched Thomson Reuters GFMS gold survey released yesterday, Indian consumption still rose 5% to 987.2 tonnes last year. Lifting the restrictions, which will be made easier by gains for the rupee from historic lows set last year and an improving balance of payments, could unleash this pent up demand. Image of Wall Street traders September 2008 by thetaxhaven |
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